Thursday, September 30, 2010

SWOT

Dollar General is the largest discount retailer in the United States by number of stores with over 8,700 neighborhood stores in 35 states. So location is definitely a strength for them.  Dollar General helps shoppers Save time. Save money. Every day! by offering quality private and national branded items that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at everyday low prices in convenient neighborhood stores. Dollar General is among the largest retailers of top-quality products made by America's most trusted manufacturers such as Procter & Gamble, Kimberly Clark, Unilever, Kellogg's, General Mills, Nabisco, PepsiCo and Coca-Cola.  Carrying primarily household trusted name brands in their stores is another strengths and cutting prices.  I personally do not  believe that their advertising is strong enough, as they grow they need to probably take this into consideration.  They are taking advantages of all opportunities in growth as stores are popping up all over the place.  As the economy continues to struggle this could be a weakness.

3 comments:

  1. Are you suggesting that their new store growth is a weakness?

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  2. It could be if it leaves them with no cash reserves and if they have not done enough independent studies on their locations.

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  3. I could see over expansion as a weakness if the company is taking on a lot of debt to finance it. I would thing that the long term to capital ratio and past 3 years net profits could show if any alarming trends are occuting.

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